President Tinubu signs executive order introducing zero tax on imported pharmaceutical products
In what could be described as moves to revitalise the ailing Nigerian health sector and increase production of healthcare products, President Bola Tinubu has signed an executive order to introduce zero tariffs, excise duties and value-added tax on imported pharmaceutical products and inputs.
This was disclosed by the Coordinating Minister of Health and Social Welfare, Muhammad Ali Pate, in a statement on Friday.
He noted that the Executive Order also aims to increase local production of healthcare products.
The minister explained that agencies like the Nigeria Customs Service, National Agency for Food and Drug Administration and Control, Standard Organisation of Nigeria, and Federal Inland Revenue Service will ensure swift implementation, with special waivers and exemptions effective for two years.
He stated, “In a transformative move to revitalize the Nigerian health sector, His Excellency President Bola Ahmed Tinubu, GCFR @officialABAT, has signed an Executive Order aiming to increase local production of healthcare products (pharmaceuticals, diagnostics, devices such as needles and syringes, biologicals, medical textile, etc.).
“The Minister of Justice and Attorney General of the Federation @FedMinOfJustice, Prince Lateef Olasunkanmi Fagbemi SAN, @LOFagbemi, is to now take the next steps towards codifying the new Order.”
Pate said the order is crucial to the success of the initiative for unlocking the health care value chain (PVAC_NG) approved in October 2023 by the president.
Pate added, “The Order introduces zero tariffs, excise duties and VAT on specified machinery, equipment and raw materials, aiming to reduce production costs and enhance our local manufacturers’ competitiveness,” he said.
“Specified items include Active Pharmaceutical Ingredients (APIs), excipients, other essential raw materials required for manufacturing of crucial health products like drugs, syringes and needles, Long-lasting Insecticidal Nets (LLINs) and Rapid Diagnostic Kits, among others.
“The Order also provides for establishing market-shaping mechanisms such as framework contracts and volume guarantees, to encourage local manufacturers.”
Speaking further, Pate said the order mandates collaboration among the ministers of Health, Finance, Industry, Trade and Investment, and is meant to develop a harmonised implementation framework that will expedite regulatory approvals as well as reduce bottlenecks.
He added, “The implication of this order is pivot towards market-based incentives to encourage medical industrialization, reducing costs of medical products through import substitution over time, creating and retaining economic value and enabling job creation in the healthcare value chain.”
Pate thanked the president for his commitment to ensure Nigeria is put back on the path to prosperity.
He also thanked those who contributed to the ideas that led to the significant milestone.
